FG to supreme court: No state, including Osun, can control local govt allocations

DDM News

The Federal Government has told the Supreme Court that no state in Nigeria has the constitutional authority to manage funds allocated to local government councils.

Diaspora Digital Media (DDM) reports that this firm stance came as a response to a legal action filed by Osun State, seeking the release of what it claims are withheld funds for its local councils.

In a sworn affidavit submitted to the court, the Federal Government insisted that only democratically elected local governments can receive statutory allocations directly from the Federation Account.

The affidavit was filed by Taiye Hussain Oloyede, a Special Assistant to the President attached to the Federal Ministry of Justice.

Oloyede said Osun State lacked both legal authority and justification to demand or manage allocations meant for the local councils.

According to him, Osun’s request violates an existing Supreme Court judgment which prohibits state interference in local government finances.

The Supreme Court had previously ruled in Attorney General of the Federation vs. Attorney General of Abia State & Ors. that such funds must bypass states and go straight to the local councils.

The Federal Government described Osun’s legal claim as “baseless, misleading, and deceitful.”

It emphasized that Osun had admitted in its filings that it intended to redirect local government funds to state-run education and healthcare, which contradicts court orders.

Oloyede also pointed out that there was no proof the councils had submitted their bank details to the Minister of Finance.

He said the state never showed it had consent from the councils to sue on their behalf.

The affidavit stressed that the local government councils in Osun are being administered by elected officials from the last local polls conducted by the previous APC-led government.

These officials’ tenures will expire in October 2025.

The Federal Government said it never withheld local government funds and had informed Osun’s legal counsel of this fact in person.

A written submission by Chief Akin Olujinmi, SAN, who leads the FG’s legal team, labeled Osun’s case “shocking.”

He argued that the Supreme Court had already established that funds must go directly to councils, not through state governments.

The Federal Government accused Osun of violating this ruling by collecting funds between July 2024 and February 2025.

According to Olujinmi, Osun now seeks fresh orders from the same court it disobeyed, a move the FG finds deeply troubling.

The Federal Government maintains that only local councils can bring a valid legal complaint on this issue.

It said Osun’s attempt to sue under the Supreme Court’s original jurisdiction was flawed and without merit.

The written address argued that a bureaucratic lapse cannot be considered a constitutional dispute needing the Supreme Court’s intervention.

The FG insisted that the Supreme Court must not reward disobedience to its prior judgments.

It also asked the court to compel Osun to return all allocations it previously collected on behalf of the local governments.

These funds, the FG said, should be redistributed directly to the respective councils.

Meanwhile, Osun State claims that the continued seizure of funds has crippled its local government administration.

In its own affidavit, Osun’s Commissioner for Finance, Ogungbile Adeola Olusola, said the councils were unable to carry out their constitutional duties due to the withheld funds.

He warned that the situation threatens both grassroots governance and the broader administrative structure of the state.

Osun wants the court to declare the fund withholding illegal and unconstitutional.

The state is also asking the Supreme Court to order the Federal Government to release the funds immediately.

The legal battle now hinges on whether the court sees Osun’s claim as a legitimate defense of local councils or a violation of federal financial laws.

The case has implications for how local governments across Nigeria access federal allocations in future.

It also highlights ongoing tension between state and federal authorities over financial control and the autonomy of local councils.

As the legal proceedings continue, the spotlight remains on the Supreme Court to clarify the limits of state power in managing grassroots governance.

The outcome could shape the financial independence of Nigeria’s 774 local governments for years to come.

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